Even export-led developing countries thus initially helped absorb the excess supply from the rich exporters. But developing countries experienced a series of financial crises in the 1990s that made them realize that borrowing large amounts from industrial countries to fund investment was a recipe for trouble. In Chapter 3, I explain why these economies moved from helping to absorb global excess supply to becoming net exporters themselves and contributing to the problem: essentially, their own financial systems were based on fundamentally different principles from those of their financiers, and
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